The first is to show how Enterprise’s operations demonstrate being different or doing different things than their competitors Hertz and Avis. Hertz and Avis primarily locate at airports, train stations and major hotels. Where does Enterprise locate its rental locations?
If we accept that all customers put price as their most important buying criterion, what would be the next most important criteria as the reasons a customer will rent from Hertz or Avis? Describe at least three of these, why they are important in the customer’s renting decision, and how each company conducts business to address these needs and preferences of their customers?
After price, what is the primary reasons a person rents from Enterprise? What things (buyer benefits) does Enterprise do to make them the preferred rental agency for their customers? Many Enterprise locations are in collision or repair shops, or in auto dealers. How has Enterprise used their location strategy to make it difficult for Hertz and Avis to locate in those same kinds of locations? If Hertz and Avis chose to locate in or near Enterprise locations how would this compromise Hertz and Avis strategic distinctives value propositions?
Remember when companies make trade offs it means that they can not serve all customers effectively. They will seek to serve the primary group of customers they have identified. They make a conscious decision to allow those who don’t fit their profile to buy from someone else.
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